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David maintains several bank accounts. He provided you with the following information in relation to interest earned during the 2020/21 income year: ANZ transaction account
David maintains several bank accounts. He provided you with the following information in relation to interest earned during the 2020/21 income year:
ANZ transaction account (gross interest) - refer to note (a) $5
CBA savings account (net interest) - refer to note (b) $265
Westpac term deposit (gross interest) - refer to note (c) $830
Notes:
(a) The ANZ bank account is Davids ordinary transaction account and is where his monthly pay from DCB Accountants is deposited.
(b) When David opened his CBA savings account on 1st July 2020, he neglected to provide the bank with his tax file number (TFN). The bank, therefore, deducted 47% TFN withholding tax ($235) in respect of the interest earned. The net amount of $265 was credited to his account during the 2020/21 income year.
(c) On 30th July 2020, David deposited $30,000 in a six-month term deposit with Westpac, which had an interest rate of 3% p.a. On the maturity of the term deposit on 30th January 2021, David chose to rollover the interest of $450 together with the principal of $30,000 for a further six months, with a new maturity date of 30th July 2021. David estimates that approximately $380 in interest would be accruing on this new term deposit from . calculate total assessable income from interest.
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